The project, part of the Regeneration Action plans for both towns, aims to increase local awareness of their culture and history, promote physical activity and be a tool tourists can use to navigate throughout the settlements and learn more about them.
It has been funded partly by the Banff Conservation Area Regeneration Scheme (CARS) on Low Street and Bridge Street and will provide more information on this scheme and the local buildings it has helped restore.
The project began with community consultations in summer 2017 and these allowed residents to shape the key themes explored on the interpretation panels.
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The design and content was developed with the support of a steering group of local people and organisations.
Alongside the interpretation panels, a website will offer further details and stories of the towns and their history, as well as downloadable audio guides to help people to learn more.
Chair of the Banff and Buchan Area Committee, Andy Kille, said: "I'm pleased to see this key strand of both Banff and Macduff Action Plans coming to fruition in the towns.
"Facilities like heritage trails can be used by locals and tourists alike to learn more about an area and can of course be considered an attraction, adding to an area's offering in terms of things to see and do."
Vice Chair, Mike Roy, added: "The community input and involvement in getting this project together has been great to see. That involvement in regeneration activities is important to ensure they are well supported and ultimately successful.
"I welcome the installation of this trail in the two towns and look forward to its official launch in Spring 2019, hopefully in far better weather!"
The idea is for the heritage trail website to be used and updated by the local community and the project is seeking photographs and local historical stories to add to its content.
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